Human Resource Management – Performance Management
The performance management process is designed to develop and motivate Employees while providing and giving honest and objective feedback regarding performance. When fully realised, performance management is a strategic and integrated approach to improving the performance of Employees and teams which in turn raises the performance standard of the Organisation as a whole. The process should allow a better understanding between Manager and Employee of the goals and objectives for the period ahead and the level of performance expected of the Employee.
Performance management can be defined as:
“All individuals being clear about what they need to do to achieve expected standards, and how that contributes to the overall success of the Organisation; receiving regular, fair, accurate feedback and coaching to stretch and motivate them to achieve their best”
Performance management is one of the central activities that, when successfully carried out, enables Employees to know that their contributions are recognised and acknowledged. It is not designed to be a paper exercise. Performance management is an ongoing process of communication between the Appraiser (typically the Line Manager) and the Employee that occurs throughout the year, in support of achieving the strategic objectives of the Organisation. The communication process includes clarifying expectations, setting objectives, identifying goals, providing ongoing feedback, and evaluating performance.
A performance appraisal is one of the most commonly used means of evaluating individual performance as part of an overall performance management strategy. It is essentially a continuous process in which the Employee and Appraiser (typically the Line Manager) discuss and set a number of performance goals, the Line Managers provides ongoing support, coaching and feedback, and results in a formal evaluation at year-end of how well the Employee has performed in achieving those expectations. An effective performance appraisal approach is one which not only reviews and evaluates past behaviours and actions, but is also utilised as a mechanism for focusing on individual learning and development needs in order to enhance future Employee and organisational performance. Performance appraisals are typically used alongside and support other decision making events relating to promotions, terminations, training and merit pay increases.
The performance appraisal process should not be viewed as a one off event or stand-alone meeting which must take place once or twice a year. In order to be truly successful, it should be characterised as a process of continuous dialogue between Manager and Employee, with formal opportunities for ‘check in’ during the year, in order to evaluate past performance, provide further feedback and agree or revise future priorities.
The four major components of the performance management cycle are outlined below and are reflected in our flowchart:
Standard Performance Review Cycle
Performance management can be defined as:
“All individuals being clear about what they need to do to achieve expected standards, and how that contributes to the overall success of the Organisation; receiving regular, fair, accurate feedback and coaching to stretch and motivate them to achieve their best”
Performance management is one of the central activities that, when successfully carried out, enables Employees to know that their contributions are recognised and acknowledged. It is not designed to be a paper exercise. Performance management is an ongoing process of communication between the Appraiser (typically the Line Manager) and the Employee that occurs throughout the year, in support of achieving the strategic objectives of the Organisation. The communication process includes clarifying expectations, setting objectives, identifying goals, providing ongoing feedback, and evaluating performance.
A performance appraisal is one of the most commonly used means of evaluating individual performance as part of an overall performance management strategy. It is essentially a continuous process in which the Employee and Appraiser (typically the Line Manager) discuss and set a number of performance goals, the Line Managers provides ongoing support, coaching and feedback, and results in a formal evaluation at year-end of how well the Employee has performed in achieving those expectations. An effective performance appraisal approach is one which not only reviews and evaluates past behaviours and actions, but is also utilised as a mechanism for focusing on individual learning and development needs in order to enhance future Employee and organisational performance. Performance appraisals are typically used alongside and support other decision making events relating to promotions, terminations, training and merit pay increases.
The performance appraisal process should not be viewed as a one off event or stand-alone meeting which must take place once or twice a year. In order to be truly successful, it should be characterised as a process of continuous dialogue between Manager and Employee, with formal opportunities for ‘check in’ during the year, in order to evaluate past performance, provide further feedback and agree or revise future priorities.
The four major components of the performance management cycle are outlined below and are reflected in our flowchart:
- Set Expectations
- Ongoing Feedback
- Mid-Year Review
- Annual Performance Review.
Standard Performance Review Cycle
Step 1 – Setting Goals and Objectives
A well planned goal setting process enables an Organisation to manage Employee performance in a strategic and effective way and ensure each Employee is focused on the key organisational priorities. Of major importance is creating individual performance goals and development objectives which are aligned to overall organisational priorities and ensuring that each Employee fully understands the importance of their work and how it fits in with their wider team and overall organisational success.
The alignment of organisational objectives to individual performance goals typically involves a process in which:
Organisational objectives are set and agreed by the Senior Management team taking account of overall strategic plans
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Divisional goals are set and agreed by each Senior Leader in consultation with their Managers
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Team goals are agreed by each Manager for their own team. These goals should help to achieve the overall organisational objectives
↓
Individual goals are agreed between the Employee and Manager for the year ahead and should be aligned to organisational objectives.
Establishing performance objectives at an individual level fulfils a number of purposes and helps:
A well planned goal setting process enables an Organisation to manage Employee performance in a strategic and effective way and ensure each Employee is focused on the key organisational priorities. Of major importance is creating individual performance goals and development objectives which are aligned to overall organisational priorities and ensuring that each Employee fully understands the importance of their work and how it fits in with their wider team and overall organisational success.
The alignment of organisational objectives to individual performance goals typically involves a process in which:
Organisational objectives are set and agreed by the Senior Management team taking account of overall strategic plans
↓
Divisional goals are set and agreed by each Senior Leader in consultation with their Managers
↓
Team goals are agreed by each Manager for their own team. These goals should help to achieve the overall organisational objectives
↓
Individual goals are agreed between the Employee and Manager for the year ahead and should be aligned to organisational objectives.
Establishing performance objectives at an individual level fulfils a number of purposes and helps:
- To clarify job expectations
- To motivate the individual
- To provide a means for objective measurement of an individual’s performance
- To facilitate self-assessment by the individual.
